IMPORTANT INFORMATION TO PROSPECTIVE MEMBERS
Eligibility for membership
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All people living or working in Centurion. This constitutes our common bond
(explained below).
We will be delighted if all people of Centurion can become members!
If you need more information please contact us or come to our office in Wierdapark,
Centurion.
How to Join
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Simply fill in the Application Form and email it to the office.
Alternatively come to our office in Wierdapark – you don’t need an appointment.
It will take about 15 minutes to complete the application.
Guiding principles
We are guided by the 7 principles of co-operatives as adopted by International Co-operative
Alliance (ICA) in 1995:
1. Voluntary and open membership – membership is open to all the people who can
2.
3.
4.
5.
6.
7.
make use of the services of the co-operative and are willing to accept the
responsibility of membership, without gender, social, racial, political or religious
discrimination.
Democratic member control – our cooperative is controlled by our members and
they actively participate in setting policies and making decisions. Elected
representatives are accountable to the membership. Members have equal voting
rights.
Members’ economic participation – members contribute equitably to, and
democratically control the capital of the co-operative.
Autonomy and independence – it is an autonomous and self-help organisation that
is controlled by members.
Education, training and information – it provides education, information and
training to members and prospective members about the nature and benefits of cooperation.
Co-operation among co-operatives – we co-operate and contribute in
strengthening co-operation through local, national, regional and international
structures.
Concern for community – we contribute to sustainable development of the
communities in which we operate.
Frequently asked questions (FAQs)
What is a Common Bond?
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The common bond is the factor which unites all the members of the financial services
co-operative – it is what all members have in common e.g. where they live. Because
of the common bond, all members have the good of their co-operative at heart; they
know and trust each other.
A unique feature of financial services co-operatives/credit unions is that the
regulations require all members to have a “common bond” with each other. This
reflects the fact that financial services co-operatives/credit unions are mutual
organisations run for the benefit of their members. The ethos is to serve the needs
of our community while treating people with dignity and respect.
The types of common bond are as follows:
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All members live in a particular geographical area
All members work for the same employer
Membership in an association
All of the above
What is a financial services co-operative/credit union?
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It is a financial services institution that is owned, run and controlled by its members to
meet their economic and/or social needs. Members are both clients and
owners/shareholders.
What can a financial services co-operative/credit union do for members?
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It can help members achieve financial independence through regular savings and fair
and affordable access to loans in times of need. All members are encouraged to
save regularly, even when repaying a loan. This gives the member several direct
benefits, and ensures that there are funds for the co-operative for use by all
members.
Where can one go in case things go wrong/ who is your supervisor or regulator/are
you not a pyramid scheme?
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Co-operative Banks Development Agency (CBDA). Contact details: Tel. 012 315 5367;
Fax. 086 730 3389; Email: [email protected]
What are the key differences between financial services co-operatives/co-operative
banks/credit unions, commercial banks and other microfinance institutions (MFIs)?
Structure
Clientele
Financial Services Cooperatives/Co-operative
Banks/Credit Unions
Not-for-profit, member-owned
financial cooperatives funded
largely by voluntary member
deposits
Members share a common bond,
such as where they live, work or
worship. Service to the poor is
blended with service to a broader
spectrum of the population, which
allows credit unions to offer
competitive rates and fees.
Credit union members elect a
volunteer board of directors from
their membership. Members each
have one vote in board elections,
Governance regardless of their amount of
savings or shares in the credit
union.
Earnings
Products &
Services
Service
Delivery
Commercial Banks
Other Microfinance
Institutions (MFIs)
Institutions typically
For-profit institutions
funded by external loans,
owned by stockholders
grants and/or investors
Typically serve middle- Target low-income
to-high income clients. members/clients, mostly
No restrictions on
women, who belong to
clientele.
the same community.
Stockholders vote for
a paid board of
directors who may not
be from the community Institutions are run by an
or use the bank’s
appointed board of
services. Votes are
directors or salaried staff.
weighted based on the
amount of stock
owned.
Net income is applied to lower
interest on loans, higher interest
on savings or new product and
service development.
Stockholders receive a Net income builds
pro-rata share of
reserves or is divided
profits.
among investors.
Full range of financial services,
primarily savings, credit,
remittances and insurance.
Full range of financial
services, including
investment
opportunities.
Focus on microcredit.
Some MFIs offer savings
products and remittance
services.
Main office, shared branching,
Automatic Teller Machines
(ATMs), Point of Service (POS)
devices, Personal Digital
Assistance (PDAs), cell phones,
Internet
Main office, shared
branching, ATMs,
POS devices, PDAs,
cell phones, Internet
Regular visits to the
community group
Source: World Council of Credit Unions (modified).